Suncor sells offshore oil stakes to Ithaca for $842 million

Suncor Energy has reached an agreement to sell its stakes in three offshore oil assets to Ithaca Energy for C$1.2 billion ($841.69 million) in cash. The deal includes Suncor's 48% interest in Terra Nova, 40% stake in White Rose, and 38.6% interest in West White Rose. An additional contingent payment of up to C$350 million could be triggered by future oil prices.

Ithaca Energy, based in London, will also take on investment commitments and future liabilities tied to these assets. This includes a C$500 million regulatory well compliance program starting at Terra Nova in 2027 and estimated abandonment and lease liabilities totaling C$1.4 billion. The acquisition marks Ithaca's first international deal, establishing its presence in offshore eastern Canada.

Suncor CEO Rich Kruger stated that the transaction will allow the company to focus on opportunities that generate the greatest long-term shareholder value. Suncor will retain its interests in the Hebron and Hibernia offshore projects. Additionally, Suncor has increased its share repurchases under its normal course issuer bid to C$750 million per month from C$500 million beginning in October.

The deal is expected to close in early 2027. Ithaca anticipates the acquisition will be immediately accretive to its adjusted EBITDAX, free cash flow, and dividend per share from completion.